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HSBC Home Loan Options and Interest Rates in Singapore

 In Home Loan

Home loans are one of the best things to have. It secures your family’s future and provides you the greatest asset you can ever have – given that you can pay these loans on time.

There are several options to choose from when acquiring the perfect home loan option. In this blog, we will discuss about the options from HSBC home loans and their corresponding interest rates.

HSBC Home Loan Review

HSBC, or the Hong Kong and Shanghai Banking Corporation, offers a range of financial products and services. Specifically, it offers different types of loans, mortgages, savings, investments, and credit cards to Singaporeans in the said country’s HSBC branch.

HSBC’s home loan program prides itself in having a choice of fixed rates, SIBOR-pegged home loan rates, and time deposit-pegged mortgage rates. HSBC also claims that you can save more through their HSBC Smart Mortgage program, with a bonus of having HSBC premier privileges and benefits. With that said, HSBC has a lot of enticing options for its Singaporean customers.

The Variety of HSBC’s Home Loan Packages

As mentioned, HSBC home loans are highly versatile. To further elaborate, we will discuss their fixed home loan rates, SIBOR-pegged home loan rates, and time deposit-pegged mortgage rates.

HSBC Fixed home loan rates

HSBC fixed home loan interest rates explain themselves by their name. You can enjoy stability while paying off your home loans for ease of payment without the extra worry or hassle. This can be beneficial at most times, but sometimes it can backfire you if the things related to home loans such as property value become lower in any circumstance. Still, most people prefer security over insecurity, and will stick to this easy-to-understand interest rate without the added worry.

HSBC SIBOR-pegged home loan rates

SIBOR-pegged home loan interest rates on the other hand are pegged to the market through the Singapore Interbank Offered Rate, or SIBOR. To explain what SIBOR is, it is the interest rate at which banks in Singapore charge one another. It’s an “interbank interest rate”. This is a great option to peg your interest rate in since it relies heavily on the way the market is shifting. Given that Singapore’s economy is growing stronger by the minute, you can be ensured that your interest rates will remain stable or even go lower in better days.

HSBC Time deposit-pegged mortgage rates

Lastly, the time deposit-pegged rate puts your interest rate at HSBC’s prevailing 24-month time deposit rate. In simple terms, you’re paying interest equal to their personal banking time deposit rate. This can be tricky, since you’ll be leaving your interest rates at the hands of the bank, which may prove risky if things go wrong and the rates can go up. Still, HSBC is quite the reputable bank, so you won’t see that scenario in the near future.

What’s HSBC Smart Mortgage?

mortgage

You may have become curious about HSBC’s Smart Mortgage program as well. The Smart Mortgage program is made for current account holders of HSBC. The goal of this home loan program is to reduce the interest rate of your home loan by offsetting the interest earned in your current account. It is SIBOR-pegged and generally a better way to deal your home loans with HSBC.

How Will I Know which HSBC Home Loan Option is Best for Me?

HSBC can offer a lot of options. Luckily, Home Loan Whiz is here to help!

Contact one of our consultants now to receive a free recommendation to find the best home loan options for you!  Get the best housing loan options at your fingertips now. Enquire for the lowest rates on this link.

wayne quek
Wayne is a Chartered Financial Analyst (CFA), and holds a Bachelor of Business Management (Finance) from Singapore Management University (SMU). A successful Relationship Manager during his time with DBS and HSBC, Wayne used his expertise in financial markets to help his clients build up comprehensive investment portfolios. The entrepreneur is also the founder of Home Loan Whiz, a mortgage consulting firm that assists clients with selecting ideal mortgages for their needs.
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